Generally, a price target is an estimate of the future price of an investment asset. In the equity market, price targets are typically generated by analysts and refer to the price level at which an analyst believes a given security will rise or fall over a particular period of time.
Price targets are considered a key to maximizing return on investment assets, but can also be notoriously difficult to maintain. Typically, a price target based farther in the future has more uncertainty than one based on a shorter time frame. In addition, approaches to deriving price targets run the gamut from using detailed valuation models to relatively simple market multiples. For example, in some instances, investment firms blend elements of market multiple to “triangulate” their way to an optimal price target. As such, price targets tend to be labor-intensive to establish, and even more difficult to maintain and monitor as investment prospects and market conditions change over time.
Accordingly, there is a need for systems and techniques to improve the generation and maintenance of price targets.